HB 336 — Requiring a seller of residential property or unimproved

90R1712 DRS-D By: González of Dallas H.B. No. 336 relating to requiring a seller of residential property or unimproved real property to be used for residential purposes to disclose an oil, gas, or mineral lease on the property and oil and gas equipment on the property or adjoining property.

SECTION 1. Subchapter A, Chapter 5, Property Code, is amended by adding Section 5.0131 to read as follows: Sec. 5.0131. SELLER'S DISCLOSURE OF OIL, GAS, OR MINERAL LEASE OR OIL AND GAS EQUIPMENT ON OR NEAR REAL PROPERTY INTENDED FOR RESIDENTIAL USE. (a) In this section, "oil and gas equipment" means machinery, drilling equipment, or other equipment used in the drilling or maintenance of oil and gas wells, in the production of oil and gas, or in the transportation of petroleum products. (b) A seller of residential real property or unimproved real property intended for residential use shall provide to the purchaser of the property a written notice if: (1) oil and gas equipment is located on the property or a parcel of land adjoining the property; or (2) the property is subject to a valid, unexpired oil, gas, or mineral lease. (c) A seller is not required to provide the notice under Subsection (b) if, to the best of the seller's belief and knowledge, the conditions described by Subsections (b)(1) and (2) do not exist on the property. (d) Notice required under Subsection (b) must be delivered by the seller: (1) on or before the effective date of an executory contract binding the purchaser to purchase the property; and (2) not later than the 30th day before the date the transfer of the property becomes effective. (e) If a contract is entered into without the seller providing the notice as required by this section, the purchaser may terminate or rescind the contract for any reason not later than the 30th day after the later of: (1) the effective date of the contract; or (2) the date the transfer becomes effective.

SECTION 2. The changes in law made by this Act apply only to a contract for the sale of real property entered into on or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2027.